Buy, sell, send and receive Bitcoin Cash on Coinbase • Hacker News Board

Re: Buy, sell, send and receive Bitcoin Cash on Coinbase

#91

Post by gtrubetskoy » Wed, Dec 20, 2017, 2:47 AM UTC

pmorici wrote: post #83

hendzen wrote: post #5

I wonder how much money Coinbase employees, friends and family made by insider trading on this announcement. Gotta love unregulated markets!

Coinbase prohibited employees from trading BCH in the weeks leading up to this according to their twitter.

Exactly how do you "prohibit" trading a crypto currency?

Re: Buy, sell, send and receive Bitcoin Cash on Coinbase

#92

Post by dahdum » Wed, Dec 20, 2017, 2:48 AM UTC

colinbartlett wrote: post #77

So if I sell my newfound BCH today, which was birthed from thin air a few months ago, but originates from BTC I bought years ago, is it short term capital gains or long term?

Nobody knows what IRS says on the matter, but everyone I know of is treating it as a stock split with the holding period of original bitcoin . You do have to calculate an adjusted cost basis for the forked coins, at time of split (most common) or sale (sounds iffy).

Re: Buy, sell, send and receive Bitcoin Cash on Coinbase

#93

Post by erentz » Wed, Dec 20, 2017, 2:48 AM UTC

colinbartlett wrote: post #77

So if I sell my newfound BCH today, which was birthed from thin air a few months ago, but originates from BTC I bought years ago, is it short term capital gains or long term?

Short term capital gain with a cost basis of $0 makes the most sense.

Re: Buy, sell, send and receive Bitcoin Cash on Coinbase

#94

Post by QML » Wed, Dec 20, 2017, 2:49 AM UTC

All this cryptocurrency talk has inspired me to understand the innerworkings of exchanges -- so how does a company like Coinbase scale to meet the demands of new customers? Surely they're not the first company to deal with this problem.

Re: Buy, sell, send and receive Bitcoin Cash on Coinbase

#95

Post by gtrubetskoy » Wed, Dec 20, 2017, 2:50 AM UTC

sowbug wrote: post #88

gtrubetskoy wrote: post #80

Earlier quoted context omitted.

This would all be fun and games, but I suspect the SEC will want an explanation and I'm not so sure Coinbase has a good one. I wouldn't be surprised if they are shutdown tomorrow before sunrise.

The USDA will want to have a word with them as well. However, neither has any regulatory authority over Coinbase.

They are registered as money transmitters in just about every state, not sure what the legal implications of that are exactly, but I doubt the regulatory bodies will just let it slip. If there is any suspicion of "fraud", then you don't need SEC (or USDA, lol) - the local police department and FBI are generally good enough.

https://www.coinbase.com/legal/licenses?locale=en-US

Re: Buy, sell, send and receive Bitcoin Cash on Coinbase

#96

Post by tedunangst » Wed, Dec 20, 2017, 2:51 AM UTC

colinbartlett wrote: post #77

So if I sell my newfound BCH today, which was birthed from thin air a few months ago, but originates from BTC I bought years ago, is it short term capital gains or long term?

BTC and BCH share the same ancestry. You bought both years ago. Like a heisencoin.

Re: Buy, sell, send and receive Bitcoin Cash on Coinbase

#97

Post by pmorici » Wed, Dec 20, 2017, 2:52 AM UTC

gtrubetskoy wrote: post #91

pmorici wrote: post #83

Earlier quoted context omitted.

Coinbase prohibited employees from trading BCH in the weeks leading up to this according to their twitter.

Exactly how do you "prohibit" trading a crypto currency?

How does any company prohibit anything?

Re: Buy, sell, send and receive Bitcoin Cash on Coinbase

#98

Post by erentz » Wed, Dec 20, 2017, 2:53 AM UTC

conanbatt wrote: post #72

hendzen wrote: post #5

I wonder how much money Coinbase employees, friends and family made by insider trading on this announcement. Gotta love unregulated markets!

I have generally mixed feelings about insider trading, because in the end, people making decisions on best information looks like economically profitable for the system. That said, Coinbase did more than insider trading today, they deliberately hid their BCash announcement to perform insider trading. That is straight down fraud to me. They provoked the insider trading situation.

This is what bothers me the most. Coinbase previously had indicated only withdrawals would be enabled by Jan 1st, which means they'd have a form where you could claim your BCH and have it sent to your private wallet address.

Somehow this turned into "Actually we'll allow full trading. And surprise! We're not even going to tell you about it despite working on it for months, we'll just unleash it on a random Tuesday evening."

Re: Buy, sell, send and receive Bitcoin Cash on Coinbase

#99

Post by maram » Wed, Dec 20, 2017, 2:54 AM UTC

hendzen wrote: post #5

I wonder how much money Coinbase employees, friends and family made by insider trading on this announcement. Gotta love unregulated markets!

this move by coinbase will prompt the gov to regulate trading cryptocurrency, which will lead to further legitimization of cryptocurrency..

Re: Buy, sell, send and receive Bitcoin Cash on Coinbase

#100

Post by hendzen » Wed, Dec 20, 2017, 2:57 AM UTC

maram wrote: post #99

hendzen wrote: post #5

I wonder how much money Coinbase employees, friends and family made by insider trading on this announcement. Gotta love unregulated markets!

this move by coinbase will prompt the gov to regulate trading cryptocurrency, which will lead to further legitimization of cryptocurrency..

so what you're telling me... is that this is good for Bitcoin?